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Q1 revenueBusiness update
I N V E S T O R P R E S E N TAT I O N
M a y 2 0 2 0
Econocomat a glance
Agenda
Q1 2020 Revenue
Covid-19 update Outlook
May 2020 - Investor Presentation 2
ANGEL BENGUIGUI
Managing Director
Speakers
ETIENNE JACQUET
Investors Relations
VALERIE CLAR
Head of Group Financing
Econocomat a glance
Fact sheet
May 2020 - Investor presentation 4
FY 2019 key numbers
• 18 countries • 10,300 Employees• €2,9 Bn revenue• €126 M ROP • 45 years’ experience
Econocom is a European group that makes digital transformation happen for companies
and public organizations.
Econocom: the digital solutions builder
Digital Services & Solutions, the preferred partner for the digital
transformation of companies throughout the entire value chain
May 20220 - Investor presentation 5
Key differentiators
Provide a strong value proposition to customers with end-to-end responsibility
Technology Management Financing, an effective entry point to take full
responsibility of digital projectsBenefit from positive market dynamics: a plural demand from customers-partners-integrators
Strengthen positions in new market segments
Technology Management Financing (TMF)
TMF, an effective entry point to take full responsibility of digital projects
May 2020 -Investor presentation 6
Key drivers
Develop expertise beyond IT.
Strengthen asset-light model.
Refocus on core countries to take advantage from economies of scale.
Fast-track the
completionof digital projects
Reconcile financial and operational
constraints of all players involved
Revenue €1,1 Bn
ROP €44 M Head-
count526
FY 2019
Digital Services and Solutions (DSS)
Econocom: the preferred partner for the digital transformation of companies throughout the entire value chain
May 2020 - Investor presentation 7
Key drivers
Offer user- and use-oriented approach.
Manage large international projects.
Supply operational excellence for sustainable growth.
New digital equipment and
associated services to modernize IT
Reconcile financial and operational
constraints of all players involved
Products & Solutions Services
Revenue €1,8 Bn
ROP €82 M Head-
count8 940
FY 2019
2019-2020 key achievements
May 2020 – Investor Presentation 8
Refocus activityon core business
Strong discipline on costs
Keep debtunder control
Focus on TMF core historic business as well as DSS in synergy
BUSINESS OBJECTIVES
ACTIONPLANS
Prepare disposal of non-core businesses
Turn around plans for loss making units
Focus on most profitable deals
Implement a cost reduction plan
Closely monitor working capital
Use wisely refinancing options
In progress2 closed1 pending 2/3 more to go
In progress€30 M done in ‘19€30 M exp’d in ‘20
May 2020 - Investor presentation 9
JEAN-LOUIS BOUCHARD
Chairman & CEO
Founder of Econocom in 1973
ANGEL BENGUIGUI
Managing Director International / Finance
Joined Econocom in 2006
Investment banking background
LAURENT ROUDIL
Managing Director France/Procurement & IT
Joined Econocom in 2015
25 years of experience in digital transformation
A new governance with a very experienced and focused coordination committee
Q1 2020 Revenue
Q1 2020 revenue hit by Covid-19 health crisis
Main geographic areas impacted (in particular France, Italy and Spain)
Organic growth: -11.1% after restatement of Rayonnancedisposal in Q4 2019
Excluding revenue from discontinued activities (€32 M for Q1 2020 vs. €48 M equivalent Q1 2019)
Q1 2020 Revenue
May 2020 - Investor Presentation 11
€596 M
€670 M
€596 M
€674 M
Revenue from ongoing operations
Of which organically
Q1 2020
Q1 2019
Q1 2020
Q1 2019
11,5%-
11,1%-
Q1 2020 revenue by segment
May 2020 - Investor Presentation 12
TMF business revenue suffered from lag primarily due to :
• Delays in signing contracts for new deals
• Postponed deliveries due to clients’ reception being closed
P&S revenue decline linked to procurement issues with Asian suppliers
Consultants from Services BUs had to reschedule clients’ assignments due to confinement of their employees
€181 M
€216 M
Technology Management & Financing
16.1%-
Q1 2020
Q1 2019
2018
€415 M
€457 M
Digital Services and Solutions
Q1 2020
Q1 20199.3%
-Services Products & Solutions
€155 M
€170 M €287 M
€260 M
France
50% (53%)
8% (3%)
North America
Revenue by geographical area
May 2020 - Investor Presentation 13
Major impacts of Covid-19 in France and Italy
Spain and other regions better oriented
Q1 2020 revenue (%)Q1 2019 revenue (%)
Benelux
Total€596M
North & East Europe
15% (16%)
Spain
8% (7%)
8% (6%)
Italy
10% (14%)
Covid-19 update
Business Continuity Plan
May 2020 - Investor Presentation 15
P&S and TMF processes enhanced by electronic
procedures and signatures
Services BUs continue to render services and
adapt to each client’s situation
All employees who can do so work from home
Preserve cash and margin…
Cost reductionprogram amplifiedincluding partial unemployment
when needed
Careful management of debt and liquidities with ad hoc measures :Share buyback on hold
Cancellation of the issue premium refund in 2020
Disposal of non-core businesses
well under way
May 2020 - Investor Presentation 16
… to maintain the group’s financial solidity
Outlook
A unique business model ready to seize the already emerging opportunities
Econocom is the only player
on the enterprise
transformation market
that leverages digital solutions
delivery through financing capabilities
Econocom on track to generate a new growth cycle
May 2020 - Investor Presentation 19
Well positioned to help companies to restart their businesses with tailored financing solutions
Enhance humancapital development
Restart M&A initiativesLaunch new customer-centric
offerings in a fast changing working environment
Q&A
Thank you
Contact Investor Relations: [email protected]
Contact Press Relations: [email protected]
Tel. +33 1 80 81 50 00
